By Shabnam Muzammil:
Recent comments by National Development Minister Khaw Boon Wan on the issue of expensive executive condominiums (ECs) could be a sign that the government is looking to implement another round of property cooling measures.
At a DTZ seminar held yesterday, the consultancy revealed that demand for ECs is at an all-time high due to potential gains and the narrowing price gap between ECs and mass market condos.
Lee Lay Keng, Associate Director, Research at DTZ noted that there is a large pool of EC buyers and the pipeline of ECs was close to its peak (7,000 units) in the middle of last year. “It hit one of its highest levels in Q2 2012, and despite six rounds of cooling measures, demand still remains strong.”
Lee noted that Mr Khaw’s statement might be indicative of potential curbs.
“Something to look out for would be the government’s implementation of making EC open spaces chargeable to developers,” she said.
Ong Choon Fah, DTZ’s Head of Consulting and Research, also speculated that there could be other restrictions in the form of higher down-payments for second and third-time buyers.
“There could also be a policy introduced to sell your HDB flat before you purchase a condominium,” added Ong.
Shabnam Muzammil, Senior Journalist at PropertyGuru, wrote this story. To contact her about this or other stories email shabnam@propertyguru.com.sg
Related Stories:
Home prices could drop 5%: DBS
Alexandra gaining ground as property hotspot
Thomson View sale hits a roadblock